Summary of the latest report from Jerome Powell:
The Fed kept the interest rate between 4.25%–4.50%, and Powell warned that inflation remains "significant", partly attributable to tariffs and geopolitical tensions. In light of the slow progression towards the 2% target, he projects two rate cuts this year, possibly starting in September, although seven out of 19 members prefer not to lower. Moderate economic growth is expected (~1.4%), rising unemployment (~4.5%) and inflation close to 3% by the end of the year. He reiterated the Fed's independence from political pressures, anticipating "prudent and data-dependent" decisions for now.
